authID (AUID) Q3 2024 earnings summary

Executive summary

• Achieved significant progress in Q3 2024, including major new contracts, product innovation, and a $10 million, three-year agreement with a next-generation AI company in India, marking entry into a high-growth market for biometric authentication.

• Welcomed a new Chief Product Officer and expanded the leadership team with key hires in partnerships and sales, targeting financial services and partnership-driven growth.

• Revenue for Q3 2024 was $249,000, up from $43,000 in Q3 2023, driven by new customer contracts signed in late 2023.

• Net loss for Q3 2024 was $3.36 million, compared to $3.72 million in Q3 2023; nine-month net loss was $9.68 million.

• Accumulated deficit reached $169.2 million as of September 30, 2024, with substantial doubt about ability to continue as a going concern.

Financial highlights

• Q3 2024 revenue was $249,000, up from $43,000 in Q3 2023; nine-month revenue reached $687,000, up from $118,000 year-over-year.

• Q3 net loss from continuing operations was $3.4 million (including $0.6 million non-cash charges), improved from $3.7 million loss last year.

• Adjusted EBITDA loss for Q3 was $2.87 million, up from $2.1 million last year, reflecting reinvestment in staff post-restructuring.

• Operating expenses for Q3 were $3.8 million, flat year-over-year; nine-month operating expenses were $10.7 million, up from $7.6 million due to absence of prior year’s one-time non-cash expense reversal.

• Cash balance at September 30, 2024 was $11.7 million, up from $10.2 million at December 31, 2023.

Outlook and guidance

• Full-year 2024 revenue guidance reduced to $800,000–$900,000 due to delayed customer go-lives and volume adjustments, but still represents 4x year-over-year growth.

• Booked ARR pipeline grew to over $33 million in Q3; company remains committed to $9 million BAR target for 2024, a 3x year-over-year increase.

• RPO expected to grow to $13–$14 million by year-end, up from previous $12–$13 million target.

• Company expects to amend certain customer contracts, deferring $1.4 million in minimum payment obligations, impacting timing of revenue recognition through 2027.

• Plans to raise additional funds in 2025 to support operations and growth initiatives.